Replies to post #118347 on Biotech Values

[DewDiligence]

If this went to court, MRK may have ended up with zero. So not sure why J&J didn't push this further?

There was little upside to JNJ in pushing harder because, from a bottom-line standpoint, the settlement terms are not that different from an all-out win. In Europe, where MRK retained the marketing rights, JNJ now gets half the net profit with zero expenditure of its own capital! If JNJ had reacquired the marketing rights to Remicade/Simponi in Europe, it would have had to create its own salesforce and marketing infrastructure.